The Canadian dollar strengthened against 14 of the 16 most- traded currencies amid rising crude oil and gold prices. Commodities account for about half of Canada's exports. The Standard & Poor's/TSX Composite Index gained 0.4 percent.
The Canadian dollar rose 0.4 percent to C$1.0190 per U.S. dollar at 5 p.m. in Toronto, from C$1.0235 on April 11. It touched C$1.0275, the lowest since April 1. One Canadian dollar buys 98.21 U.S. cents.
The currency, known as the loonie after the image of the bird on its one-dollar coin, will strengthen to a one-year high by December as surging commodity prices shield Canada's economy from the economic slowdown in the U.S., CIBC World Markets forecast.
The loonie rose to 90.58 Canadian cents per U.S. dollar on Nov. 7, 2007, on the strength of soaring commodity prices. It stalled this year, though prices of crude oil, gold and wheat continued to rise. Commodities account for about half of Canada's exports.
The diminished importance of the U.S. economy amid global demand for commodities will provide downside protection to Canadian commodity exports, according to CIBC.